The buzz surrounding the OnLive cloud
gaming service announced at GDC continues.
GamesIndustry.biz quotes Dave Perry about Gaikai, his planned rival service,
saying: "Our solution is arguably better than anything OnLive has - they're
never going to be able to beat us on this." This is an excerpt from an
interview with
Perry on the topic. Meanwhile,
TechRadar UK reports Guy de Beer, CEO of competing cloud gaming company
Playcast, says he believes OnLive is positioning itself for acquisition by a
giant like Microsoft or Google. Finally,
GamesIndustry quotes Crytek's Cevat Yerli saying when they investigated such
a concept in 2005 they found that internet infrastructure would make it
practical sometime between 2013 and 2015.

No, the real expense for ISPs is the final internet connection. Bandwidth that stays within their network is much much cheaper. If they had an agreement with these guys it would entail a server that was on AT&Ts network meaning faster connections and no need for caps.

You are wrongfully assuming the limits and overage charges have to do with a need for the caps. They don't especially for an ISP the size of AT&T. It's nothing but a money grab.